Modern Mining October 2017

MINING News

Asanko Gold acquires Miradani project

Asanko Gold Inc, listed on the TSX and NYSE American, has acquired the Miradani project, which is adjacent to the Asanko Gold Mine (AGM) in Ghana, West Africa, from AngloGold Ashanti. Covering an area of approximately 15 km 2 , the Miradani project is on an existing min- ing lease (valid until May 2025). The northern boundary of the concession is located approxi- mately 5,5 km south of AGM’s processing plant on the NE-SWAsankrangwa structural corridor. The under-explored Asankrangwa Gold Belt is about 7 km wide and over 50 km long. The area is highly prospective with multiple geochemical anomalies aligning with the structures interpreted from the airborne VTEM and magnetic surveys completed by Asanko in 2015. Asanko holds the largest land package on this belt and it hosts all of the company’s 5,1 million ounces of reserves. Three significant initial target areas along the main structural trend, Miradani, Central and Tontokrom, have been identified. A phased drilling campaign is expected to com- mence in Q4 2017, with a view to completing a maiden Mineral Resource Estimate in H2 2018. Historical trench and soil geochemistry data, along with recent mechanised artisanal mine workings, indicate that each target area consists of multiple parallel mineralised zones, individually ranging between 3 m and 37 m in width. Individual 1,5 m trench samples have assayed up to 47,3 g/t. “The Miradani project is a very exciting exploration project with huge potential to increase our resource base and contribute to our future growth,” says Asanko’s President and CEO, Peter Breese. “Located next to our current operation and within trucking dis- tance, the Miradani project comes with the advantage of being on an existing mining lease, which means that we will be able to accelerate the development timeline from resource delineation to production. “Historic trenching indicates there are at least three main zones of mineralisation across the project area and the extensive arti- sanal workings confirm gold is present. We have identified three drill ready targets which we will start to drill in the coming quarter and we look forward to updating the market fur- ther during H1 2018.” The Asanko Gold Mine is a substantial operation which is expected to produce 205 000 to 225 000 ounces in 2017 at an AISC of US$920 to US$960/oz. 

The SAG mill at Fekola. Mill construction was completed more than three months ahead of schedule (photo: B2Gold).

Approximately 75 % of the drilling has focused on exploration drilling with the remainder on infill drilling. Based on the successful results to date, the Fekola mine and regional exploration budgets for 2017 have been increased by US$3,8 million to US$15,4 million. The resource identified to date from drilling below and to the north of the Fekola reserve boundary combined with the near-pit portion of the Kiwi zone (to the north) could add 900 000 ounces (two thirds in the indicated category) and is being further drilled to potentially move resources from the inferred category into the measured and indicated categories. Drilling further to the north of the reserve pit boundary has identified addi- tional gold mineralisation near surface and in some deeper holes. This indicates the potential to increase the gold resources and ultimately expand the planned Fekola reserves further to the north. Deeper below the Kiwi zone is the down-plunge extension of the main Fekola ore body. Drilling in this zone (Fekola Deeps) has intercepted Fekola-type gold grades over large intervals. If the on- going drilling between the near surface Kiwi zone and Fekola Deeps continues to encounter good grade goldmineralisation, there is the potential for the Fekola pit to ultimately become much larger to exploit both the Kiwi zone and a portion of Fekola Deeps by open pit. The Fekola Deeps zone remains open further to the north further down dip and has the potential to be exploited by underground mining. 

allow for future expansion of the mill throughput from 4 Mt/a to 5 Mt/a for an additional expenditure of approximately US$18 million. Due to the success of the Fekola mine construction and further exploration suc- cess at Fekola, B2Gold decided to expedite the expansion and complete it during the construction phase. The Fekola project remains on budget. Total cumulative forecast construction costs for the project (from inception to completion) include pre-construction sunk costs of approximately US$41 mil- lion, feasibility study construction costs of US$462 million and US$18 million additional costs for the mill expansion to 5 Mt/a. Additionally, another US$20 million is expected to be spent on relocating the village of Fadougou. In 2018, the Fekola mine is now pro- jected to produce between 400 000 and 410 000 ounces of gold at an operating cost of approximately US$354 and an AISC of US$609 per ounce of gold. Gold production over the 10-year Life of Mine is expected to average 345 000 ounces a year (with 400 000 ounces a year being produced in years 1 to 3). B2Gold’s exploration team believes the expansive Fekola property has the potential to host additional large Fekola- style gold deposits. Surface exploration, regional drilling and geophysics to date have identified numerous targets. The company has drilled approximately 2 800 aircore, reverse circulation and dia- mond drill holes totalling 180 000 m.

October 2017  MODERN MINING  5